AtlasClear nearly doubles revenue, but accounting gains support net profit

AtlasClear Holdings ($ATCH) reported fiscal-year revenue of $20.1 million, up 85%, helped by stock-locate revenue of $6.8 million compared with $0.3 million a year earlier. Its operating loss widened to $9.8 million from $4.9 million. Reported net income was $2 million, down from $5.8 million, and included an $11.1 million gain from revaluing an earnout liability.

Cash increased to $15.4 million from $7.5 million, and the company said substantial doubt about its ability to continue as a going concern had been alleviated. New correspondent relationships offer potential growth, but most had not yet contributed materially to the reported year. The results therefore show business expansion and improved liquidity without demonstrating that core operations have become profitable.

Sources:

• AtlasClear — fiscal-year results